Earnings before interest, taxes, depreciation and amortization. Adds these items back to reported earnings to more accurately reflect real cash earnings of company. Similar to operating cash flow, except operating cash flow also considers changes in levels of inventories and receivables.
Archives
Double Bottom/ Double Top
These are reversal patterns. It is a decline or advance twice to the same level (plus or minus 3%). It indicates support or resistance at that level. These are signature patterns that are playable with little or no confirmation.
Downtick
A trade is on a downtick when the last trade occurred at a price lower than the previous one.
Downtrend
Stock price is heading down.
Due Diligence
The process whereby an in-depth examination of a company’s business prospects is conducted.
Dividend/Distribution Record Date
The date on which a security holder must be registered as a holder of an issue to receive the dividend/distribution.
Dividends
Cash or stock paid to shareholders, usually on a quarterly schedule.
Dollar Cost Averaging
Investing a fixed amount of dollars in a specific security at regular set intervals over a period of time. Dollar cost averaging results in a lower average cost per share, compared with purchasing a constant number of shares at set intervals. The investor buys more shares when the price is low and buys fewer shares when the price is high.
Discount Broker
A stockbroker charging lower commissions than full-service brokers. Discount brokers do not give investment advice.
Dividend
The portion of the issuer’s equity paid directly to shareholders. It is generally paid on common or preferred shares. The issuer or its representative provides the amount, frequency (monthly, quarterly, semi-annually, or annually), payable date, and record date. The exchange that the issue is listed on sets the ex-dividend/distribution (ex-d) date for entitlement. An issuer is under no legal obligation to pay either preferred or common dividends.